Bharat Heavy Electricals Limited Receives Demand Order from GST Authorities
Bharat Heavy Electricals Limited (BHEL) announced that it received a demand order from the GST Authorities in Karnataka on March 31, 2026. The order relates to a demand raised under Section 74 of the CGST Act, 2017, for the period FY 2019-20 to FY 2022-23.The demand initially raised in a show cause notice on September 29, 2025, amounted to Rs. 65.75 crore. An adjudicating authority subsequently dropped Rs. 54.83 crore of the demand. The remaining balance demand is Rs. 10.92 crore, accompanied by a penalty of Rs. 10.80 crore and applicable consequential interest.
The issues raised pertain to disputes regarding classification, liability write-backs, and input tax credit. BHEL states that the demand is not tenable due to the strength of its case.
The company intends to file an appeal before the Appellate Authorities to contest the balance demand of Rs. 10.92 crore. BHEL does not anticipate any significant financial implications from this matter.
| Sr. No. | Particulars | Details |
|---|---|---|
| 1 | Name of the listed company | Bharat Heavy Electricals Limited |
| 2 | Type of communication received | Order in Original in respect of demand raised u/s 74 of CGST Act, 2017 |
| 3 | Date of receipt of communication | 31.03.2026 |
| 4 | Authority from whom communication received | Joint Commissioner of Central Tax, Bengaluru West GST Commissionerate, Bengaluru |
| 5 | Brief summary of the material contents of the communication received | In respect to demand raised vide Show Cause Notice for FY 2019-20 to 2022-23 amounting to Rs. 65.75Cr., reported on 29.09.25, Order has been passed by Adjudicating Authority, dropping the demand by Rs. 54.83 Cr. Balance demand raised amounting to Rs. 10.92 Crs. along with penalty amounting to Rs. 10.80 Crs and consequential interest as applicable. |
| 6 | Period for which communication would be applicable | FY 2019-20 to FY 2022-23 |
| 7 | Expected financial implications | There is no expected financial implication as the demand is not tenable since the case is strong on merits. |
| 8 | Details of any aberrations/non- compliances identified by the authority | The issues raised are on account of dispute reg. classification issues, Liability write back, input tax credit, etc. |
| 9 | Details of any penalty or restriction or sanction imposed | Penalty of Rs.10.80 Cr. |
| 10 | Action(s) taken by listed company | The Company is in the process of filing appeal before the Appellate Authorities within the prescribed timelines. |
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